The Electric Generation Supplier (EGS) Coordination Tariff notes that if a Certified Retail Electric Services Provided (CRES) does not meet creditworthiness standards on its own merit, it must provide an alternative credit arrangement. The EGS Agreement defines the several types of alternative credit arrangements available to suppliers.
The following files are available to assist suppliers in demonstrating CRES creditworthiness using an alternative credit arrangement:
The EGS Credit Exposure Formula Slides show the credit risk calculation for determining a particular suppliers' exposure, which is then used to determine the amount that will be requested for the credit enhancement (letter of credit or guaranty) the supplier would need to provide to the FE utility.
In addition to the creditworthiness requirements described in the EGS Coordination Tariff, FirstEnergy’s Ohio Operating Companies will accept a minimum rating of BBB- from Fitch IBCA as one of the two ratings required to demonstrate creditworthiness. FirstEnergy’s Ohio Operating Companies will continue to accept ratings from S&P, Moody's, and Duff & Phelps.
FirstEnergy’s Ohio Operating Companies request an initial credit amount of $250,000 and an CRES may be required to provide additional credit amount at a later date as stipulated in EGS Coordination Tariff Section VI. Credit Requirements.
Supplier Support must be informed of the specific alternative credit arrangement that the CRES will use to demonstrate creditworthiness.
(09/24/2009)
